Tax Law

my husband was employed by a NC employer that withheld 20% of his paycheck for taxes but never paid anything in to the IRS. Should we file form 4852, substitute W-2 and will accepting a 1099 be a mistake?

I suggest you file Form 4852, but first contact the IRS and notify them of the problem. Call them at 1-800-829-1040. Do not accept a 1099. If the employer withhold taxes, the employer is liable to the IRS for that amount.